Kotecki Says It's "Way Too Early" To Declare End Of Tightening Cycle

NBP's Ludwik Kotecki told Tok FM radio station today that it is "way too early" to declare the end of the rate-hike cycle as he expects inflation to near +20.0% Y/Y in February.

• "Certainly, we cannot say that the rate-hike cycle is over, it would be way too early. Not to mention that some MPC members were recently saying that they were forecasting rate cuts near the end of this year. I think it is way too early for such comments."
• Kotecki noted that if the economy proves resilient amid a global recession or serious slowdown, then inflation could prove persistent and the MPC will need to take further action.
• The policymaker said that interest rates are not the only tool at the NBP's disposal, as he toyed the idea of bond issuance by the central bank.
• Kotecki noted that the MPC should pay special attention to accelerating core inflation, which may have quickened to +11.6-11.7% Y/Y in December.
• Kotecki belongs to the hawkish minority in the NBP's rate-setting panel, with most members preferring interest-rate stabilisation.